1/30/2009 @ 7:46PM

Forbes Fundamental Opportunity Index: January Winners and Losers

The Forbes’ Fundamental Opportunity Index continues to outperform the broader market since its introduction on Nov. 6 of last year, with the S&P down 8.7% compared to a 6.0% dip for our index. In January, however, the market wanted no part of value stocks. While the S&P 500 posted its largest January decline in history, 8.6%, our index of value-oriented stocks fell 9%.

NBTY
, which manufactures nutritional supplements and operates Vitamin World retail shops, leads our 50 value stocks for January. Shares of the $2 billion (revenues) company climbed 21% on the month. On Jan. 28, NBTY reported first quarter results, with sales of $611 million, an increase of 27%, but profits slipped 41%, year-over-year.

Index member and defense contractor
Northrop Grumman
gained 7%, helped by a company announcement that it expects full-year results to be in line with the top end of analyst estimates. Northrop Grumman also received eight military contracts in January.

Oil and gas companies claimed two of the top five spots for the month. Shares of
Cameron International
and
Diamond Offshore Drilling
were up 13% and 6%, respectively.

January’s biggest losers should look familiar to last week’s readers.
Teledyne Technologies
and
Microsemi
finished the month down 37% and 34%, respectively after issuing earnings guidance short of analyst expectations. Shares of
Trimble Navigation
met a similar fate after cutting its 2008 forecasts and slashing jobs on Jan. 14. Shares of the company, which global positioning services to government and agricultural customers, lost 31% for the month.